Fluid Power Equipment Market To Generate $66.0 Billion Revenue by 2030

The fluid power equipment market size is expected to advance at a CAGR of 6.1% during 2024–2030, to reach USD 66.0 billion by 2030. This can be ascribed to the surging applications of such systems in the heavy machinery, construction, automotive, manufacturing, and aerospace and defense sectors, the increasing need for the upgradation of manufacturing processes, and the growing end-use industries.

Moreover, these systems maintain safety in a hazardous environment, as they are spark-free and can be used utilized under high temperatures. Further, the high power-to-weight ratio delivered by such systems makes them appropriate for mining activities. Thus, the rising mining activities in several countries across the world, such as China, Vietnam, and Australia, to cater to the growing requirement for raw materials are expected to fuel their need in the coming years.

The major advantage of fluid power systems over electric systems is that they can generate high torque at relatively low speeds. This feature is beneficial for smooth operations at high loads. Due to this, the preference of customers is shifting from traditional components to fluid power components.

Moreover, the market for fluid power equipment has showcased rapid advancements in technology in recent years, on the account of the rising need for manufacturing efficiency, safety standards, and compliance. This could be further propelled by the advent of technology such as Industrial Internet of Things (IIoT) and Industry 4.0. This leads to an increase in the use of sensors in hydraulic and pneumatic components for various industrial applications.

Furthermore, fluid power pumps are used mostly in the aerospace industry for the proper functioning of various engine components. The U.S. and Germany are some of the leading countries that manufacture fluid power systems, which are used in this industry. For instance, the landing gear of aircraft requires hydraulic power systems for its operation.

The APAC market is expected to grow significantly over the forecast period. This can be due to the rising investment in construction activities in countries such as China and India, the growing end-use sectors, the surging inclination of companies to utilize these systems to perform heavy machinery jobs, and rising automation in factories to support consistency and greater operational efficiency in the region.

Mergers and Acquisitions Are the Recent Industry Trend

One of the prominent trends in the fluid power equipment industry is the increasing number of mergers and acquisitions among players. They have been involved in this strategy to offer a diverse range of solutions, as companies acquire products to complement their existing product lines. Further, they seek this as an opportunity to expand their manufacturing capacity in order to cater to evolving and unmet demand for hydraulic and pneumatic components.

Increasing Application in the Construction Sector

The construction sector dominates the market, contributing USD 10.9 billion revenue in 2022. The usage of fluid power technology in the construction industry is increasing, as the deployment of technology in systems offers several benefits such as energy efficiency, fast operation, and enhanced safety. Moreover, the rising investment in the tourism industry has led to a surge in the construction sector, which, in turn, has fueled the demand for such equipment.

Surging Demand for Material Handling Equipment

Companies are facing increased labor costs and a shortage of skilled workforce, thereby continuously seeking an opportunity to invest in automated solutions. This leads to the rising demand for automated machines and solutions in different industries such as construction, automotive, agriculture, manufacturing, and chemicals. This further drives the demand for material handling equipment, including fluid power systems, in diverse applications.

The key players operating in the fluid power equipment market are Sparrows Group, Kawasaki Heavy Industries Ltd., Parker-Hannifin Corporation, HYDAC Technology Ltd., Daikin Industries Ltd., Bosch-Rexroth AG, Danfoss, Casappa S.p.A, and HydraForce Inc.